Online NewsFinancial Independence

Have the Business Models Come of Age?

Presented by John Granatino5th International Symposium on Online Journalism

University of Texas, April 16, 2004

Agenda

• A bit about Belo

• Original registration goals

• Advertiser case study

• The results

A Bit About Belo

Belo Interactive is the Internet subsidiary of Belo – the nation’s 9th largest media company with more than 150 years of building loyal audiences.

Belo Interactive is the Internet subsidiary of Belo – the nation’s 9th largest media company with more than 150 years of building loyal audiences.

A Bit About Belo

Local market dominance

• BI attracts on average 5.5 million visitors generating over 110 million page views a month. 1

• DallasNews.com and projo.com are the most visited local news and information web sites for their markets. 2

• The following Belo Interactive Web sites are the most visited local television-affiliated sites in their markets: 3

- azfamily.com, Phoenix - KGW.com, Portland- KING5.com, Seattle - KHOU.com, Houston- KVUE.com, Austin - KMOV.com, St. Louis

1. BI Web Logs, 2003 2. Nielsen//NetRatings Q2 2003 Custom Report 3. The Media Audit – Phoenix 4/03; Seattle 6/03; Austin 5/02; Portland 6/03; Houston 8/03; St. Louis, 7/03

A Bit About Belo

Recognition from our peers• 2004

Murrow Awards: KGW.com, WFAA.com, KTVB.com, KMOV.com, WVEC.com, WWL-TV.com

AP Regional Awards: Dallas, Norfolk, Portland

• 2003 Sigma Delta Chi: KGW.com Online News Association: DallasNews.com EPpy award: DallasNews.com Murrow Awards: KGW.com and KREM.com AP Regional Awards: DallasNews.com, KGW.com, Projo.com

• 2002 Murrow Awards: KREM.com, WFAA.com, KVUE.com, NBC6.com,

WWL-TV.com NAA Digital Edge Award: Projo.com AP Regional Awards: DallasNews.com, WFAA.com, KGW.com,

KVUE.com

Registration Goals

1. Identify and value customer segments

2. Increase audience loyalty and value

3. Migrate audiences

4. Increase advertising impact

Registration Goals

October 2000: Planning

May 2001: Launch

August 2001: 1st email sale

February 2003: Audience management system

May 2003: Offer targeted online advertising based on declared or behavioral data profiles

September 2003: Launched broad suite of Precision Advertising Solutions

October 2000: Planning

May 2001: Launch

August 2001: 1st email sale

February 2003: Audience management system

May 2003: Offer targeted online advertising based on declared or behavioral data profiles

September 2003: Launched broad suite of Precision Advertising Solutions

Goal 1: Identify & Value Customers

Who are your heaviest users in recency, Who are your heaviest users in recency, frequency and amount, and what do you frequency and amount, and what do you know about them?know about them?

Represent 5% of total usersRepresent 5% of total users

Consume 51% of page viewsConsume 51% of page views

Tend to be higher income and slightly Tend to be higher income and slightly younger than print readersyounger than print readers

Do not subscribe to the newspaper (94%)Do not subscribe to the newspaper (94%)

Goal 1: Identify & Value Customers

Interests/HobbiesInterests/Hobbies DemographicsDemographics

Male 53%Female 47%

$0-$19,999 11%$20,000-$34,999 12%$35,000-$49,999 15%$50,000-$74,999 21%$75,000-$99,999 17%$100,000+ 24%

13-17 Years Old 2%18-24 Years Old 10%25-34 Years Old 25%35-44 Years Old 26%45-54 Years Old 26%55-64 Years Old 11%

Male 53%Female 47%

$0-$19,999 11%$20,000-$34,999 12%$35,000-$49,999 15%$50,000-$74,999 21%$75,000-$99,999 17%$100,000+ 24%

13-17 Years Old 2%18-24 Years Old 10%25-34 Years Old 25%35-44 Years Old 26%45-54 Years Old 26%55-64 Years Old 11%

BI’s customer profileBI’s customer profile

6.3 million registrations

1.9 Million targeted email subscribers

6.3 million registrations

1.9 Million targeted email subscribers

Automotive 14%Books/Literature 23%

Computers/Technology 22%Cooking 24%

Electronics 13%Entertainment/Movies 35%

Finance/Stock Market 13%Gaming Internet/Computer 12%

Golf 13%Health & Fitness 24%

Home Improvement 22%Music 30%

Outdoor Activities 22%Shopping 18%

Sports 31%Travel 28%

Automotive 14%Books/Literature 23%

Computers/Technology 22%Cooking 24%

Electronics 13%Entertainment/Movies 35%

Finance/Stock Market 13%Gaming Internet/Computer 12%

Golf 13%Health & Fitness 24%

Home Improvement 22%Music 30%

Outdoor Activities 22%Shopping 18%

Sports 31%Travel 28%

62%

77%

Goal 2: Grow Audience Value

New visitor/TrialNew visitor/Trial

Retention/GrowthRetention/Growth

Loyal customerLoyal customer

Grow Grow loyalty/ loyalty/ usageusage

• NewsNews

• CustomerCustomer experiencexperiencee

• PromotionPromotion

Goal 2: Grow Audience Value

Full audience management• Technology enables “behavioral” tracking on our

websites• Integrates registration data to enable demographic or

interest category targeting • Ad server designed to predict, deliver, report on

audience segments

REGISTER AUDIENCE

DEFINEAUDIENCEGROUPS

DELIVER TARGETED

ADVERTISING

Ad Serving System

MEASURE BEHAVIOR

Audience Management

System

Goal 2: Grow Audience Value

Online ads can be served based on:

Content Section

News Sports Weather Business Entertainment

Traditionalsite targeting

Traditionalsite targeting

Demographics

Gender Income Age

Lifestyle/Interest

Entertainment Shopping Travel

Purchase Intent

Real Estate Employment Automotive Financial

New targeting options

New targeting options

Goal 3: Migrate Audiences

Dallas Morning News circulation(785,000)

DallasNews.comregistered users

(1,825,000)

Reach opportunityfrom online

Reach opportunityfor BI

Frequency from duplicated audience

(As of Jan, 2004)(As of Jan, 2004)

Goal 4: Increase Advertising Impact

Unleash the Internet’s power to deliver “one to one” or Unleash the Internet’s power to deliver “one to one” or addressable marketing. addressable marketing.

Define specific audiences – be Define specific audiences – be likelike traditional media traditional media

Increase results – Relevance, efficiency, Increase results – Relevance, efficiency, performanceperformance

Develop unique solutions – be Develop unique solutions – be differentdifferent than than traditional traditional mediamedia

Goal 4: Increase Advertising Impact

We are able to deliver targeted messages directly to advertisers’ most valuable customers, no matter where those customers travel throughout our sites.

Goal 4: Increase Advertising Impact

Traditional placement: reach large groups with similar profiles

Goal 4: Increase Advertising Impact

Client’s message will only reach most valued customer segment, no matter where customer travels on our site

Client’s message will only reach most valued customer segment, no matter where customer travels on our site

Precision placementhits the exact target every time

Goal 4: Increase Advertising Impact

Targeted Segments:

Visitors to the automotive section of DallasNews.com in the past 30 days

Measurable Results:

»Response rate of 7.7%

»Credit applications doubled

»Mitsubishi automobile searches increased by 17% on site

»Campaign generated 44% of calls at a time when eight promotions were running in other media

Targeted Segments:

Visitors to the automotive section of DallasNews.com in the past 30 days

Measurable Results:

»Response rate of 7.7%

»Credit applications doubled

»Mitsubishi automobile searches increased by 17% on site

»Campaign generated 44% of calls at a time when eight promotions were running in other media

Targeted Campaign Yields Dramatic Results for Auto Dealer

Results: A Competitive Advantage

Untargeted audiences:

Commodity impressions

Lower performance

Low consumer relevance

Unknown audience reach

Targeted audiences:

Powerful delivery combinations

Efficiency

Superior performance

Audience relevance

Reach and frequency

Results: More Efficiency for Advertisers

• Email revenue more than doubled in 2003 Since 2002, we have delivered more than 1,500 email campaigns We now have over 700 email clients

• Average CPM for a targeted campaign is more than double an untargeted CPM We have delivered more than 150 targeted campaigns We now have over 50 targeted clients and 20 were new clients to

Belo Interactive

• I can pay for a larger news staff Belo spends its money disproportionately on journalists, so success

in targeting leads to success in content

Results: More Money for the Web Site

Targeted Revenue as % of Total

0%

4%

8%

12%

16%

20%

24%

2002 2003 2004 Expectation

DallasNews.com targeting revenue grew 143% from the first quarter of 2003 to the last quarter

Online NewsFinancial Independence

Have the Business Models Come of Age?

Presented by John Granatino5th International Symposium on Online Journalism

University of Texas, April 16, 2004